TORONTO, Sept. 12, 2023 (GLOBE NEWSWIRE) — The Becker Milk Company Limited (the “Company”) (TSX-BEK.B) is pleased to report the results for the three months ended July 31, 2023.
HIGHLIGHTS
- Total revenues for the three months ended July 31, 2023 were $742,639 compared to $697,122 for the same period in 2022;
- The non-GAAP financial measure Net Operating Income for Q1 fiscal 2024 was $583,806 compared to $592,376 in fiscal 2023;
- Net income for Q1 fiscal 2024 was $0.14 per share for the year, compared to $0.02 net income per share in Q1 fiscal 2023.
FINANCIAL HIGHLIGHTS
Total revenues for the three months ended July 31, 2023 improved $45,517 compared to the three months ended July 31, 2022, a result of higher finance income.
| Three months ended | ||
| July 31 | ||
| 2023 | 2022 | |
| Property revenue | $669,478 | $678,652 |
| Finance income | 73,161 | 18,470 |
| Total revenues | $742,639 | $697,122 |
| Net income (loss) attributable to common and special shareholders | $247,951 | $32,763 |
| Average common and special shares outstanding | 1,808,360 | 1,808,360 |
| Income (loss) per share | $0.14 | $0.02 |
Components of the $215,188 decrease in net income for the three months ended July 31, 2023 compared to the three months ended July 31, 2022 are:
| Changes in Net Income – Three months ended July 31, 2023 | |
| compared to three months ended July 31, 2022 | |
| Favourable change in fair value adjustment | $240,000 |
| Increase in finance income | 54,691 |
| Decrease in expenses related to strategic review | 14,440 |
| Increase in gain on disposal | 12,376 |
| Decrease in net operating income | (8,570) |
| Increase in administrative expenses | (9,770) |
| Increase in current taxes | (32,329) |
| Decrease in recovery of deferred income taxes | (55,650) |
| Increase in net income | $215,188 |
As investment property capitalization rates were unchanged during the three months ended July 31, 2023, compared to the three months ended July 31, 2022 there was a favourable change in the fair value adjustment to investment properties.
Non-GAAP financial measures
Net operating income
The non-GAAP financial measure Net Operating Income for the three months ended July 31, 2023 was $583,806, a $8,570 decrease compared with the previous year. Reduced revenue was partially offset by a reduction in operating expenses.
| Three months ended | ||
| July 31 | ||
| 2023 | 2022 | |
| Property revenue | $669,478 | $678,652 |
| Property operating expenses | (85,672) | (86,276) |
| Net operating income | $583,806 | $592,376 |
Funds from operations and adjusted funds from operations
For the three months ended July 31, 2023 the Company recorded Adjusted funds from operations of $246,390 ($0.14 per share) compared to $162,697 ($0.09 per share) in 2022.
| Three months ended | ||
| July 31 | ||
| 2023 | 2022 | |
| Net income (loss) | $247,951 | $32,763 |
| Add (deduct) items not affecting cash: | ||
| Adjustment to fair value of investment properties | 0 | 240,000 |
| Loss (gain) on sale of investment properties | (2,122) | 10,254 |
| Tax on gains from sale of property | 54,736 | 9,065 |
| Deferred income taxes | (54,175) | (109,825) |
| Funds from operations | 246,390 | 182,257 |
| Add (deduct) non-operating items: | ||
| Expenses related to strategic review | 0 | 14,440 |
| Sustaining capital expenditures | 0 | (34,000) |
| Adjusted funds from operations | $246,390 | $162,697 |
| Adjusted funds from operations per share | $0.14 | $0.09 |
STRATEGIC REVIEW
The Board of Directors continually evaluates strategic directions for the Company and has engaged in discussions with potential acquirers. While the Company has engaged in some discussions within the last year, none of those discussions are active at this time. The Company continues to review its strategic alternatives and will update the market as appropriate, and as required.
DIVIDEND
The Directors of the Company have declared the regular semi-annual dividend on Class B Special and Common Shares of 40 cents per share. This dividend of 40 cents will be paid to those shareholders of record as of September 21, 2023, and payable on September 29, 2023.
The dividends for Canadian tax purposes will be considered as an eligible dividend.
The Company’s interim financial statements for the three months ended July 31, 2023, along with the Management’s Discussion and Analysis will be filed with SEDAR at www.sedar.com.
Readers are cautioned that although the terms “Net Operating Income”, and “Funds From Operations” are commonly used to measure, compare and explain the operating and financial performance of Canadian real estate companies and such terms are defined in the Management’s Discussion and Analysis, such terms are not recognized terms under Canadian generally accepted accounting principles. Such terms do not necessarily have a standardized meaning and may not be comparable to similarly titled measures presented by the other publicly traded entities.
For the Board of Directors
G.W.J. Pottow, President
Tel: 416-698-2591
